Bajaj Auto Planning Cuts in Production?

Bajaj Auto may see a production cut by up to 25% for its three-wheelers and motorcycles throughout plants which are majorly focused on exports. This will be due to uncertainties relating to exports in Nigeria, its largest market

Several reports indicate that Bajaj Auto, which produces both KTM and Pulsar motorcycles, is expected to manufacture close to 250,000-270,000 units this month, as compared to average production figures of 338,000 units for each of the first 9 months in FY23

This will lead to the cumulative capacity utilization rate for Bajaj’s plants falling to less than 50%. The company has installed capacity of manufacturing 550,000 units each month

Rakesh Sharma, the executive director at Bajaj Auto, stated that economic and civil uncertainties in Nigeria prevail due to demonetization and elections, leading to shipments being sizably reduced until things improve on the ground

Bajaj had export volumes of 100,679 units for January this year, the lowest figure in 30 months. Exports have been reducing across 6 months, with average declines of 34.4% (year-on-year) as per reports. Bajaj is cutting production at its plants at Pant Nagar and Waluj

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